Becker's ASC Review

Oct_2018_ASC

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8 ASC MANAGEMENT Idaho ASC files lawsuit against AmSurg, cites mismanagement: 7 things to know By Laura Dyrda A Twin Falls, Idaho-based ASC filed a lawsuit against Nashville, Tenn.- based AmSurg and Twin Falls NSC, complaining of "gross mismanagement" and alleging the companies did not support strategic planning aer competitor Twin Falls-based St. Luke's Magic Valley Medical Center opened an outpatient surgery center, among other issues, according to a Magic Valley.com report. Here are seven things to know: 1. In 1998, physicians opened Sawtooth Surgery Center and reported successful growth and development in the Twin Falls community for eight years before bringing on National Surgical Corp. to acquire 51 percent ownership in 2007. According to the report, the ASC remained largely successful until NSC sold a majority of its ownership in the center to AmSurg in 2011. 2. e lawsuit alleges Sawtooth's performance "deteriorated" between 2011 and 2017, when AmSurg and Twin Falls NSC were "super- imposing generic corporate resources on a surgery center that was uniquely situated and uniquely affected by market conditions." Included in those market conditions was a local hospital, St. Luke's Magic Valley, that was opening a new outpatient surgery center where physicians began taking cases. 3. In the lawsuit, Sawtooth reported physi- cian satisfaction dropped from 70 percent in 2012 to 25 percent in 2013, citing issues with scheduling, on-time starts, patient wait times and property management. e ASC also stated that physicians were dissatisfied with the building maintenance and a lack of support for strategic planning. 4. According to the lawsuit, patient charges significantly increased aer AmSurg acquired a portion of the center, leading to patient complaints. Although the suit states AmSurg reduced the charges, Sawtooth al- leges the company "looked to other means of squeezing profitability." 5. As a result of the center's challenges, the law- suit states ophthalmologists considered leaving the center in 2013, and ultimately reduced case load before leaving the center in 2017. Sawtooth alleges in the lawsuit that the man- agement companies did not provide support for the center during discussions to maintain a relationship with the ophthalmology group. 6. In 2017, Twin Falls NSC did not renew the ASC's option to lease its property without notice. 7. e ASC has filed a lawsuit against Twin Falls ASC and AmSurg seeking more than $75,000 in damages.n AbbVie accused of bribing physicians in $1.2B kickback scheme — 6 insights By Eric Oliver T he California Insurance Commission is suing Ab- bVie saying the drugmaker allegedly offered physi- cians kickbacks for its popular gastroenterology drug Humira, which resulted in $1.2 billion in fraudulent claims, the San Francisco Chronicle reports. Here's what you should know: 1. Humira treats Crohn's disease and ulcerative colitis as well arthritis. 2. The state alleged AbbVie illegally offered physicians cash, meals, trips, drinks and patient referrals to ensure they prescribed Humira. 3. The state also alleged AbbVie sent registered nurses to the homes of patients prescribed Humira to serve as "Humira ambassadors." The nurses allegedly helped with patient care and were instructed by AbbVie to not com- municate patient concerns to physicians. 4. AbbVie told the Chronicle the allegations were meritless. 5. "AbbVie operates in compliance with the many state and federal laws that govern interactions with healthcare providers and patients," the company said in a statement to the Chronicle. "AbbVie provides a number of support services for patients, once they are prescribed Humira, that both educate and assist patients with their therapy, including nursing support, and these resources are ben- eficial to patients dealing with a chronic condition. They in no way replace or interfere with interactions between patients and their healthcare providers." 6. The state is seeking up to $6.3 billion in penalties and injunctive relief against AbbVie and is also seeking a court order to prevent more alleged kickbacks. n AbbVie allegedly offered physicians, cash, meals, trips, drinks and patient referrals

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